MARIETTA, Ga. — An aerospace engineering and design firm with a big presence in metro Atlanta is the recipient of a large new federal contract.
The U.S. Department of War, formerly Department of Defense, announced a contract to triple their production partnership with Lockheed Martin for the manufacture of surface to air missiles.
Lockheed Martin has an aerospace and defense innovation site in Marietta, Ga., at Dobbins Air Reserve Base.
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The aerospace company describes their PAC-3 MSE missiles as “combat-proven Hit-to-Kill interceptors that defend against modern and emerging threats, including tactical ballistic missiles, cruise missiles, advanced threats and aircraft.”
On Tuesday, defense officials said the tripling of the production partnership was part of a recently announced seven-year framework agreement with the department.
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“This framework agreement marks a fundamental shift in how we rapidly expand munitions production and magazine depth, and how we collaborate with our industry partners,” Michael Duffey, Under Secretary of War for Acquisition and Sustainment, said in a statement. “Lockheed Martin’s willingness to help pioneer this transformative acquisition model is a win-win for the taxpayer, our national security, and the rebuilding of the industrial base needed for the Arsenal of Freedom.”
Going forward, the U.S. government will increase the number of missiles purchased from the PAC-3 MSE line from 600 units to 2,000 missiles each year.
The department said the agreement “provides for strict delivery accountability and allows both the Department of War and Lockheed Martin to share in any enhanced profitability resulting from new equipment and volume efficiencies.”
Officials said the framework sets up a “basis for negotiating a seven-year supply contract,” though it would still be subject to Congressional approval and funding authorizations.
“We appreciate the Department of War’s leadership in advancing acquisition reform,” Lockheed Martin Chairman, President and CEO Jim Taiclet, said. “This first-of-its-kind approach builds on years of advocacy and collaboration to bring commercial practices to major acquisition programs. We will create unprecedented capacity for PAC-3 MSE production, delivering at the speed our nation and allies demand while providing value for taxpayers and our shareholders.”
Channel 2 Action News was told by a company spokesperson that PAC-3 MSEs are produced at a facility in Arkansas, so the Marietta facility will not be impacted by the production increase.
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